AUD/USD analysis: en route to break above 0.7300

AUD/USD Current price: 0.7277

  • Australian dollar backed by the strong momentum in equities.
  • Chinese October Trade Balance figures could help the pair extend its advance.

The AUD/USD pair traded as high as 0.7299 on the back of broad dollar's strength post-US mid-term elections, retreating just modestly from the level in the American session. Really discouraging data, as the Australian AIG Performance of Construction Index plunged to 46.4 in October from 49.3 in the previous month, was overshadowed by solid gains in European and US indexes. Limiting the pair's advance, on the other hand, were softer base metals' prices, with gold losing the 1,230.00 mark. The country has no relevant macroeconomic figures to offer this Thursday, but China will offer its October Trade Balance figures. In dollar terms, the country is expected to post a surplus of $35.0B, while imports are seen up by 14%, and exports by 11.0%. Better-than-expected numbers should maintain the Aussie on the winning side.

From a technical point of view, the AUD/USD pair is poised to extend its advance, as it's currently developing well above all of its moving averages, with the 20 SMA maintaining a strong bullish slope after crossing above the larger ones. Furthermore, the pair is far above the 61.8% retracement of its September/October decline at 0.7200, and the strong static support at 0.7250. Technical indicators in the mentioned chart have eased modestly, holding near overbought readings, rather reflecting the intraday retracement from daily highs than suggesting an upcoming slide.

Support levels: 0.7250 0.7200 0.7165      

Resistance levels: 0.7315 0.7340 0.7375

View Live Chart for the AUD/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.